Nikolai Timofejev
15 years in FinTech and payments. Maps your business model to the right structure and leads the file all the way to a live DAO LLC, including any licensed pairing, banking and payment rails.
Get a crypto license in Marshall Islands.
The Marshall Islands is one of the few places to legally recognise DAOs. The DAO Act 2022 lets a DAO register as a domestic LLC - a DAO LLC - giving a governance-token project or DeFi protocol limited liability and legal personality, at a 0% tax base. It is a legal wrapper, not an exchange licence - and we say so.
27 yrs
on the international marketon the market
60+
in-house specialistsspecialists
400+
Crypto licenses obtainedlicenses obtained
Updated
Marshall Islands in brief
Legal personality for a DAO.
The Republic of the Marshall Islands was the first sovereign state to give decentralised autonomous organisations a legal home. Its DAO Act of 2022 lets a DAO register as a domestic limited liability company - a DAO LLC - for both for-profit and nonprofit organisations. The statute recognises what makes a DAO a DAO: governance through smart contracts, and membership held as tokens. That is the distinctive thing here. Instead of a protocol or an on-chain treasury sitting in a legal vacuum, exposed to unlimited personal liability for its members, the DAO gets limited liability and a legal person that can hold assets, sign contracts and appear in court.
This is a legal wrapper, not an exchange or custody licence - and the difference matters, so we state it plainly. A DAO LLC gives your governance-token project, DeFi protocol or on-chain organisation a recognised legal shell; it does not by itself authorise you to run a regulated exchange or hold client funds. Where a model needs a supervised permission, that lives in a licensed jurisdiction, paired with the wrapper. Registration runs as a non-resident domestic LLC through the Registrar, administered by IRI. The Marshall Islands is a US-associated state under the Compact of Free Association and uses the US dollar, and it levies no corporate income tax on foreign-source income - a genuine 0% base. We build the wrapper end to end, and pair it with a licence where the model calls for one.
The Marshall Islands recognises DAOs in law. The DAO Act 2022 lets a DAO register as a domestic LLC - a DAO LLC - with limited liability and legal personality for a protocol or treasury.
It is a legal wrapper, not an exchange licence - stated plainly. A 0% base, in US dollars; a supervised permission, if needed, is paired from a licensed jurisdiction.
The structure
The DAO LLC wrapper - and a licence where needed.
Two workstreams: the DAO LLC that gives your on-chain organisation legal form, and the licensed pairing where a regulated activity needs supervision elsewhere. We scope both before any work begins.
The DAO LLC gives an on-chain organisation legal form; a licensed pairing covers any regulated activity.
01 - DAO ACT 2022 · THE WRAPPER
A DAO LLC with legal personality
The working structure: a DAO registered as a domestic LLC under the DAO Act 2022, with statutory recognition of smart-contract governance and token-based membership - limited liability and a legal person for a protocol or on-chain treasury.
The working structure: a DAO registered as a domestic LLC under the DAO Act 2022, with statutory recognition of smart-contract governance and token-based membership - limited liability and a legal person for a protocol or on-chain treasury.
- ✓DAO registered as a domestic LLC
- ✓For-profit or nonprofit DAOs
- ✓Smart-contract governance recognised
- ✓Membership held as tokens
- ✓Limited liability for members
- ✓Legal personality - hold assets, contract, sue
02 - LICENSED PAIRING
Wrapper, not an exchange licenceA supervised permission where the model needs one
The wrapper is not an exchange or custody licence. Where your model runs a regulated venue or holds client funds, that permission lives in a licensed jurisdiction - paired with the DAO LLC so the structure holds together.
The wrapper is not an exchange licence - a supervised permission, where needed, is paired from a licensed jurisdiction.
- ✓DAO LLC as the on-chain legal shell
- ✓Exchange or custody licensed elsewhere
- ✓Pairing scoped to the activity
- ✓AML/KYC where the licensed layer requires
- ✓Banking arranged on full disclosure
- ✓One coherent, honestly-disclosed structure
Costs and timelines are confirmed for your case before any work begins. The DAO LLC is a legal wrapper, not an exchange licence - we are candid about that, and pair it with a supervised permission where the model requires one.
Why Marshall Islands
A legal home for on-chain organisations.
The DAO Act 2022 gives a DAO real legal form - limited liability and personality - at a 0% base. A wrapper, honestly framed.
✓
Statutory DAO recognition
The Marshall Islands was the first sovereign state to recognise DAOs in law. A DAO LLC is a real domestic company under the DAO Act 2022, not an improvised interpretation of general partnership rules.First sovereign state to recognise DAOs.
✓
Limited liability for members
Without a wrapper, members of a DAO can face unlimited personal liability. A DAO LLC puts a limited-liability shell around the organisation - the single biggest reason projects incorporate.A limited-liability shell around the DAO.
✓
Smart-contract governance recognised
The statute accepts governance by smart contract and membership held as tokens. Your on-chain rules and token votes are recognised by the legal form, rather than fighting it.On-chain rules and token votes recognised.
✓
A 0% tax base
No corporate income tax on foreign-source income - a genuine zero-tax base, in US dollars. Clean to model for an internationally-facing protocol or treasury.No tax on foreign-source income; USD.
✓
For-profit or nonprofit
The Act covers both for-profit and nonprofit DAOs, so protocol companies and public-goods or grant DAOs alike have a home. The structure fits the mission.Both kinds of DAO have a home.
✓
A wrapper, stated plainly
This is legal form, not a regulated exchange or custody licence. We say so up front, and pair the wrapper with a supervised permission wherever the model actually needs one.Legal form, not an exchange licence.
How it compares
How the Marshall Islands differs from other routes.
The Marshall Islands is the DAO legal-wrapper play, not an exchange-licensing regime. The honest comparison is below.
Marshall Islands vs other jurisdictions
| Feature |  Marshall Islands | Other jurisdictions |
|---|---|---|
| What you get | DAO LLC legal wrapper | Often a VASP/exchange licence |
| DAO recognition | Statutory (DAO Act 2022) | Rare or absent |
| Corporate tax | 0% | Ranges widely |
| Exchange/custody | Paired elsewhere | Licensed in-jurisdiction |
What you get
Marshall IslandsDAO LLC legal wrapper
Other jurisdictionsOften a VASP/exchange licence
DAO recognition
Marshall IslandsStatutory (DAO Act 2022)
Other jurisdictionsRare or absent
Corporate tax
Marshall Islands0%
Other jurisdictionsRanges widely
Exchange/custody
Marshall IslandsPaired elsewhere
Other jurisdictionsLicensed in-jurisdiction
Country by country
| Country | License type | Taxation | Requirements |
|---|---|---|---|
| Marshall Islands | DAO LLC (DAO Act 2022) | 0% corporate | Legal wrapper, not a licence |
 BVI | VASP Act 2022 (FSC) | 0% corporate | Registration, AML-led |
 Cayman Islands | VASP Act (CIMA) | 0% corporate | Registration / licence, supervised |
 Palau | No dedicated VASP licence | Varies | Company route; digital-residency pilots |
Marshall IslandsLicense typeDAO LLC (DAO Act 2022)
Taxation0% corporate
RequirementsLegal wrapper, not a licence
BVILicense typeVASP Act 2022 (FSC)
Taxation0% corporate
RequirementsRegistration, AML-led
Cayman IslandsLicense typeVASP Act (CIMA)
Taxation0% corporate
RequirementsRegistration / licence, supervised
PalauLicense typeNo dedicated VASP licence
TaxationVaries
RequirementsCompany route; digital-residency pilots
Setting it up
What the DAO LLC structure contains.What the DAO LLC structure contains.
A legal wrapper still has to be built properly. The checklist below is what a DAO LLC - and its licensed pairing where needed - is assembled around, to the DAO Act 2022.
01
DAO LLC formation - a non-resident domestic LLC registered under the DAO Act 2022 through the Registrar, administered by IRI.
02
DAO in the name - the organisation carries «DAO LLC» in its registered name, as the Act requires.
03
For-profit or nonprofit - the DAO's purpose defined and matched to the right form.
04
Governance recorded - the smart-contract governance and voting rules set out and reflected in the operating agreement.
05
Membership by token - token-based membership described so the legal form and the on-chain reality match.
06
Registered agent - the local agent and registered-office function the Registrar requires.
07
Members and beneficial owners - ownership and control disclosed, to the standard the Registrar and banks expect.
08
AML/KYC where paired - the compliance layer the licensed pairing requires, where the model runs a regulated activity.
09
Licensed pairing - a supervised exchange or custody permission in a licensed jurisdiction, where the model needs one.
10
Treasury and custody design - wallet and key-management architecture described to international standards.
11
Banking file - accounts arranged on full disclosure, matched to the flows.
01
DAO LLC via the Registrar (IRI).
02
«DAO LLC» in the registered name.
03
For-profit or nonprofit purpose defined.
04
Smart-contract governance recorded.
05
Token-based membership described.
06
Registered agent and office.
07
Members and beneficial owners disclosed.
08
AML/KYC where a pairing requires it.
09
Licensed pairing where the model needs one.
10
Treasury and custody design documented.
11
Banking file on full disclosure.
Reflects the DAO Act 2022 and Registrar practice as of 2026. A DAO LLC is a legal wrapper, not an exchange or custody licence - a supervised permission, where needed, lives in a licensed jurisdiction.DAO Act 2022 + Registrar practice, as of 2026. A wrapper, not an exchange licence.
How it works
From first call to a live DAO LLC.
01
Structure and honesty
The real status - a wrapper, not a licence - your governance model and any pairing, fixed in writing before anything registers.Wrapper vs licence, governance, pairing - in writing.
02
DAO LLC formation
Registration as a non-resident domestic LLC through the Registrar, with the registered agent and «DAO LLC» name in place.Domestic LLC, registered agent, «DAO LLC» name.
03
Governance and agreement
The operating agreement, smart-contract governance and token-membership rules - drafted to match the on-chain reality.Operating agreement matched to the smart contracts.
04
Licensed pairing
Where the model needs it, a supervised exchange or custody permission arranged in a licensed jurisdiction and paired in.Supervised permission elsewhere, where needed.
05
Banking and operations
Accounts arranged on disclosure; the structure live, with any ongoing duties we can keep running.Accounts on disclosure; live and running.
Quick facts
FrameworkDAO Act 2022
StructureDAO LLC (domestic LLC)
DAO typesFor-profit + nonprofit
RegistrarVia IRI
GovernanceSmart-contract, tokenised
Corporate tax0%
CurrencyUSD
Exchange licencePaired elsewhere
A DAO LLC is a real legal wrapper - the value is legal personality and limited liability for an on-chain organisation, honestly paired with a licence where the model needs one.
On the ground in the Marshall Islands
Run from our Dubai office, with Marshall Islands counsel.
Prifinance - Marshall Islands desk
Majuro · Marshall Islands
Majuro, Marshall Islands
01
DAO LLC formation
Registration as a non-resident domestic LLC through the Registrar - the DAO Act 2022 wrapper, set up properly.Domestic LLC via the Registrar - set up right.
02
Governance and agreement
The operating agreement, smart-contract governance and token-membership rules - drafted so the legal form and the on-chain reality line up.Operating agreement matched to the on-chain rules.
03
Licensed pairing
Where the model runs a regulated activity, the supervised exchange or custody permission arranged in a licensed jurisdiction - paired with the wrapper.A supervised permission elsewhere, where needed.
04
Banking and operations
Accounts arranged on full disclosure, matched to the flows - the structure live on rails that hold.Accounts on disclosure; live on solid rails.
We also have offices in
Tallinn
Estonia
Roseni 13
Vilnius
Lithuania
Gedimino pr. 2
Prague
Czech Republic
Vlkova 532/8, Žižkov
London
United Kingdom
7 Bell Yard
Dubai
UAE
33 Level, Al Saqr Business Tower
Madeira
Portugal
Rua da Alegria 31, 1F
Istanbul
Turkey
Perpa Ticaret Merkezi, A Blok
Good to know
Taxation of DAO LLCs in the Marshall Islands.
A DAO LLC sits on a genuine 0% base - no corporate income tax on foreign-source income, in US dollars - so the tax position is clean, and the value is the legal form.
0% corporate rate
No corporate income tax on foreign-source income - a genuine zero-tax base for a non-resident domestic LLC. Clean to model for an internationally-facing protocol or treasury.No tax on foreign-source income.
US dollar base
The Marshall Islands uses the US dollar under the Compact of Free Association, so there is no local currency risk layered on top of the structure.No local currency risk on top.
Members taxed at home
A DAO LLC is a pass-through in substance for many members - so the tax that matters is where each member is resident. We flag that early rather than imply a global zero.Where each member is resident.
Substance where it lives
If a licensed pairing sits in another jurisdiction, that layer carries its own tax and substance rules. We model the whole structure, wrapper and licensed layer alike.A paired licence carries its own rules.
A wrapper, not a shelter
The 0% base is real, but the DAO LLC is bought for legal personality and limited liability first. The tax position is a benefit that follows the legal form, not the reason on its own.Bought for legal form first.
Records serve both
The governance and ownership records the structure requires also underpin the tax position - clean books that a bank and a member's tax adviser both read.Clean books for bank and adviser.
Tax summary
Corporate income tax0% (foreign-source)
Member taxationWhere members reside
Paired licensed layerOwn tax rules
CurrencyUSD
Legal basisDAO Act 2022
Crypto-specific rulesVia DAO LLC form
*As of 2026. The value is the legal wrapper on a 0% base - we model the whole structure, including any licensed pairing, honestly.
Turnkey professional support
Experienced lawyers and international consultants.
We provide end-to-end support, from company registration and the application file to regulatory interaction and compliance oversight - with an individualized approach to each client.
Oleksii Kindratenko
Builds the structure itself: the DAO LLC, operating agreement, governance documentation and any paired-licence pack. His document sets are the reason set-ups run clean and hold up to a bank's questions.
Eugeniu Bevziuc
First point of contact for international founders. Runs the whole setup remotely, across time zones and languages - from the first call to a live DAO LLC.
Follow Prifinance
Active across our channels.
Marshall Islands · DAO Act 2022
Launch your DAO or DeFi project in the Marshall Islands with expert support.
Full-service setup - the DAO LLC wrapper, its governance documentation, and a licensed pairing where the model needs one.
Get a consultation →Free legal opinion
Is a Marshall Islands DAO LLC the right fit for your project?
Our legal team will analyze your case at no cost and provide a written legal opinion: whether a DAO LLC fits, and what licensed pairing, if any, your model needs.
Written assessment within 2-5 business days
Request a free conclusion →FAQ
The Marshall Islands DAO LLC, answered.
Does the Marshall Islands license crypto?+
It offers a legal wrapper, not an exchange licence. The DAO Act 2022 lets a DAO register as a domestic LLC - a DAO LLC - with limited liability and legal personality. A regulated exchange or custody permission, if you need one, is paired from a licensed jurisdiction.
What is a DAO LLC?+
A decentralised autonomous organisation registered as a Marshall Islands domestic limited liability company under the DAO Act 2022. It gives the DAO a legal person that can hold assets, sign contracts and limit its members' liability.
Does it recognise smart-contract governance?+
Yes - the statute recognises governance by smart contract and membership held as tokens. Your on-chain rules and token votes are reflected in the legal form rather than working against it.
For-profit or nonprofit?+
Both. The DAO Act covers for-profit and nonprofit DAOs, so protocol companies and public-goods or grant DAOs alike can use the form. We match the structure to your purpose.
Can I run an exchange on it?+
Not on the wrapper alone - and we say so plainly. A DAO LLC is legal form, not a regulated exchange or custody licence. Where your model runs a venue or holds client funds, that permission is licensed elsewhere and paired in.
How is a DAO LLC taxed?+
No corporate income tax on foreign-source income - a genuine 0% base, in US dollars. In substance it is often a pass-through, so the tax that matters is where each member is resident. We flag that early.
How does registration work?+
As a non-resident domestic LLC through the Registrar, administered by IRI, with a registered agent and «DAO LLC» in the name. We handle the formation and the governance documentation end to end.
Why the Marshall Islands with you?+
Because the value is in getting the wrapper and its pairing right: the operating agreement, the governance that matches your smart contracts, and an honest read on whether you also need a licence elsewhere.
Does it license crypto?+
A wrapper, not an exchange licence.
What is a DAO LLC?+
A DAO as a domestic LLC under the 2022 Act.
Smart-contract governance?+
Yes - and token-based membership.
For-profit or nonprofit?+
Both are covered.
Run an exchange on it?+
Not alone - licence that elsewhere.
How is it taxed?+
0% on foreign income; members taxed at home.
How to register?+
Non-resident domestic LLC via the Registrar.
Why with us?+
We get the wrapper and pairing right.
Client notes
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Get a free legal opinion on your project - our legal team will analyze your case at no cost and provide a written legal opinion: whether a DAO LLC fits, and what licensed pairing, if any, your model needs.Free legal opinion: whether a DAO LLC fits, and what pairing your project needs.
✓Written legal opinion within 2-5 business days - free of charge✓A clear recommendation on the right structure, not a sales pitch✓Transparent fixed fees, confirmed up front✓EN · RU · ES speaking team
Prifinance is an independent law and advisory firm. We are not a regulator and are not affiliated with, endorsed by, or acting on behalf of the Registrar, IRI or any other public authority. Registrations are made with, and obtained directly from, the competent authorities.